Debates of February 6, 2006 (day 23)

Thank you, Mr. Speaker. Mr. Speaker, my questions are also to Minister of ITI and it’s in regards to questions earlier raised about the diamond mines and its supply relationship with the secondary mining industry. Mr. Speaker, I think we, in this House, recognize the important and positive contribution that both the diamond producers and the secondary industry provide to the North, and I don’t think I’m going to use the overused phrase of choking any mule here. I think, though, there is a role for the Minister to play in this regard, and it seems to me there are some points of differences between the producer in question and the cutting and polisher, and differences in understanding. But it seems to me that the ball is with the plant to give some evidence as to what the price difference might be. I’m wondering what the time frame is that the Minister is working with to bring these two parties together and see if the government can play some positive and constructive role going back and forth between the two. Thank you, Mr. Speaker.

Thank you, Ms. Lee. The honourable Minister of Industry, Tourism and Investment, Mr. Bell.

Return To Question 344-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. I’m hoping that the issue and the concern can be resolved immediately. I’ve asked the cutting and polishing factory group of owners to provide the information that they have that they feel suggests they are being overcharged, provide the company in question with that information, copy me with the information so that I can see it as well, bring the two parties together and have this discussion. I think it’s important that this has been lingering for some time without anybody having a real concrete understanding, just a feeling that they were not being treated fairly. So I think we need to resolve it. I have asked the cutting and polishing company to document the information and we’ll move forward if we can get that. Thank you, Mr. Speaker.

Thank you, Mr. Bell. Supplementary, Ms. Lee.

Supplementary To Question 344-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. I can tell you that the plant operators have met with most of the Yellowknife MLAs, and certainly this is an issue that is important to us and that needs to be addressed. It seems to me that the core question is with respect to price for the core customers. So I think the diamond plant is not looking for a special privilege, but just to get a fair core customer price, and the question remains as to what that is and as to whether or not there is a premium being charged and, if so, how much. I guess what came out of my discussion of this that really surprised me is lack of written document in this regard. We know that there’s a third diamond mine coming up and we know there are discussions and I’d like to know what the Minister is doing to make sure that does not happen on the third time around. Thank you, Mr. Speaker.

Thank you, Ms. Lee. Mr. Bell.

Further Return To Question 344-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. The Member is right; the concern here is around pricing. The factory, of course, would like additional rough. Everybody would like additional rough, but I think they understand that the rough being provided is what was agreed to and it really does come down to the pricing. I think the issue of core customer pricing with core customer status has some requirements, as well. You don’t have the choice of turning back rough or rejecting it. You have to take all of the rough allocated to you. That is not the case with the factories here. They are able to go through the allocation and sort of pick and choose, if you will. So there are some benefits here that the factories get that you wouldn’t get in Antwerp, aside from the pricing debate or question. I think we’re getting better, to answer the second question, with these agreements as they move forward.

The second mine, there really aren’t any concerns from the producer or the factories in terms of the allocation provided by the second mine. They feel that they are being treated fairly. I can assure the Member that the deal with the third mine will be very crystal clear in terms of what the expectations are and what should be provided for the local industry. Thank you, Mr. Speaker.

Thank you, Mr. Bell. Final supplementary, Ms. Lee.

Supplementary To Question 344-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. I hope I don’t have to quote that if he doesn’t get a crystal clear documentation of the third agreement, but I will give him the benefit of the doubt. Mr. Speaker, on the question of the first one, it’s the question of pricing as a core customer, but also the ability and flexibility to have some room to manoeuvre on to the quality of diamonds. I think there might be some room for discussion as to what things work for the cutting and polishing plant here. Because there’s a lack of a precise and clear agreement, and because of the role the GNWT has played in creating a second industry, that’s where the leadership of this government comes in. I’d like to hear the Minister say once again that he will lead this file to make sure that the two parties are brought together and that there will be an agreement in the interest of Yellowknife and both industries. Thank you, Mr. Speaker.

Thank you, Ms. Lee. Mr. Bell.

Further Return To Question 344-15(4): Support For Northern Diamond Polishing Facilities

Thank you, Mr. Speaker. I appreciate the question from the Member. Of course, yes, I will take the leadership of bringing these two companies together. We’ll sit down with the top leadership in the mine to better understand their feelings of how this arrangement is working. I should mention that in Antwerp, of course, core customers get an allocation of rough. Again, they have no choice but to take all of it and have to pay cash right now. I think the mines have been very agreeable to the idea that this was an industry in its infancy. They have held parcels, sometimes for quite long periods of time, waiting for the cutting and polishing factories to get the money together to buy the parcels. I think, for the most part, the arrangement and the relationships have been very, very good between the mines and the cutting and polishing industry. We now have this one issue of dispute around pricing and look to resolve it as quickly as possible. Thank you, Mr. Speaker.